Saturday, June 25, 2022

CIBER, Inc. (OTCMKTS:CBRIQ) Blasts Higher on Asset Sale

CIBER, Inc. (OTCMKTS:CBRIQ) has been exploding higher in recent action. The stock is a chapter 11 at this point and recently got approval to do an asset sale. As we understand it, Ciber Inc. won court approval to sell its assets to HTC Global Services Inc., after the company prevailed with a $93 million bid in an auction this week.

The stock has reacted violently to the upside in response to this information, rallying as much as 700% in just 5 days as the asset sale prices itself into shares. In all, the CBRIQ chart shows better than 460% added to share values of the company over the past week of action.

CIBER, Inc. (OTCMKTS:CBRIQ) bills itself as a global information technology consulting, services and outsourcing company with commercial clients.

The company was founded in Detroit, Michigan in 1974 by Bobby Stevenson and two additional partners. They called the company Consultants in Business Engineering Research (Ciber). Ciber is headquartered in Greenwood Village, Colorado, with office locations in the North America, Europe and Asia/Pacific.

Ciber was founded in 1974 by three individuals, one of whom would remain with the company and guide its fortunes for its crucial first two decades. Of the three original founders of Ciber, Bobby G. Stevenson emerged as the key figure in Ciber’s history, shaping a start-up computer consulting firm into a leading national force by the 1990s, when the computer consulting industry was generating more than $30 billion worth of business a year. A graduate of Texas Tech University, Stevenson spent the years between his formal education and the formation of Ciber working as a programmer analyst for International Business Machines Corporation (IBM) and LTV Steel in Houston. By the early 1970s, when Stevenson was in his early 30s, he and two other colleagues decided to make a go of it on their own and organized Ciber, an acronym for “consultants in business, engineering, and research.

The company filed for Chapter 11 protection earlier this year.

According to company materials, “With Ciber, you’ll get both technical expertise and industry knowledge. Most of our consultants are former practitioners in the industries they serve. We can bring you experts in the fields of communications, education, energy and utilities, finance, healthcare, hospitality, entertainment, manufacturing, public sector, as well as transportation and logistics. We understand your business, can help you benefit from industry-specific best-practices and have created templates to accelerate delivery and lower costs on your implementation.”

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According to the company’s latest press release, prior to the Chapter 11 filing, and subject to Bankruptcy Court approval, Ciber entered into a “stalking horse” Purchase Agreement with Capgemini to acquire substantially all of the assets of the Company in North America and India in a sale process under Section 363 of the Bankruptcy Code that will be subject to higher and better offers.

Through this proposed transaction Ciber’s clients will benefit from the high levels of service Capgemini is known to provide its clients. Ciber’s employees, who bring with them a wide range of highly valued skills and expertise, will benefit from joining a global leader in its markets.

In accordance with the sale process under Section 363 of the Bankruptcy Code, notice of the proposed sale to Capgemini will be given to third parties and competing bids will be solicited. Ciber will manage the bidding process and evaluate the bids, in consultation with independent professional advisors and as overseen by the Bankruptcy Court.

President and Chief Executive Officer Michael Boustridge commented, “With the advice and support of outside advisors, we’ve explored multiple paths, including selling the Company outside the bankruptcy process, selling certain assets of the Company, and other transactions to restructure the balance sheet or raise capital, while also focusing on attempting to improve sales, reduce costs, and exit underperforming operations. After careful consideration of the alternatives available to maximize the value of the Company, it’s become clear that the best path forward for the Company, its employees, customers and stakeholders is to accomplish a sale through the bankruptcy process.”

Clearly, for CBRIQ, the bid by HTC Global Services Inc. amounts to something far superior to the stalking horse agreement, as evidenced by the stock’s powerful upside reaction. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $CBRIQ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!

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